Chapter 439: Make big money, and small money too
Lingshi Palace Group’s current business scope does not involve the financial industry.
In Chu Jing's opinion, the company's board of directors' office hired a secretary with a finance major in order to make it easier for the chairman to consult on financial knowledge.
Maybe I can avoid that hand.
She guessed right, this was what Luo Yang meant.
She guessed wrong again. The old man she imagined turned into a young handsome man, who was probably younger than herself!
Luo Yang followed his heart and chose the attractive Chu Jing.
The two interviews did not last long.
At two o'clock, Lin Yuxi brought Cai Fujun into Luo Yang's office.
"It's been a while since I last saw you."
Cai Fujun sat down in front of the teapot and handed a cigarette to Luo Yang, saying with a smile, "I heard from Old Joe a few days ago that you played basketball with Mr. Fu."
He and Qiao Zhiyuan are close and they often play together.
"I just happened to find him for help with something."
Luo Yang believed that Qiao Zhiyuan must have told the gossip to Cai Fujun, so he simply skipped it.
"I wonder what Brother Liu and the others are busy with recently. They don't seem to be so carefree in the Magic City."
"Hahaha, isn't it because of you?"
Cai Fujun lit up a cigarette and laughed, "When I'm with you, there's always only one game, and it's not fun!"
Luo Yang was indeed not very interested in the club.
"Well, it's my fault."
He nodded and admitted, "Next time they come to Shanghai, I'll treat them all and make sure they have a great time in the second game."
"That's right. We are so old and we all have fun, but you are so young and yet you act so old-fashioned. Are you trying to stay healthy?"
Cai Fujun teased Luo Yang with a smile.
"Drink tea!"
After the pleasantries, get down to business.
"Brother, I asked you to come here this time because I want to discuss something."
"You are being so polite!"
Cai Fujun picked up the teacup, took a sip and said, "What's there to discuss between us? Just say it directly."
"Starting next year, Lemon CC's store expansion will be further accelerated, especially franchise stores, which will be opened up. By then, the number of stores will increase dramatically."
Luo Yang exhaled a puff of cigarette and said with a smile: "For the store decoration, Nai Xue + Lemon CC, the project volume may exceed 3 million, and the profit is considerable. If it is left to others like before, it will be a pity!"
Who doesn’t like making money?
Cai Fujun had thought of this idea before.
It’s just that Luo Yang hasn’t started yet, and he can’t find an opportunity to talk about this matter for the time being.
Now Luo Yang actually took the initiative to speak out
Could he not be excited?
"That's right, how can such a big piece of fat meat fall into someone else's bowl?"
Cai Fujun slapped the table lightly and said, "Besides, they are all model decorations, especially franchise stores. The decoration fees charged are much higher than the regular prices. It is possible to realize 100% profit. We can completely set up a decoration company ourselves!"
"That's what I meant."
Luo Yang smiled and said, "I have a construction team, and my brother is in the building materials business. We can definitely join forces to start a decoration company."
Luo Jianguo is the general contractor and can take on jobs worth hundreds of millions of yuan. He is now the vice president of Cathay Pacific and is in charge of engineering.
Cai Fujun knew all of this, so there was nothing wrong with what Luo Yang said!
“Because the funds are quickly recouped, the investment does not need to be too large.”
Luo Yang continued: "Especially for franchise stores, they collect fees first, which means that the project payment has been settled before the work is done."
"Hahaha, Luo Sheng Tang is our own company, and there is no arrears in the payment for the renovation of the directly-operated store!"
Cai Fujun laughed and said, "It's like picking up money!"
The two of them sang the same tune and did not mention the intention of incorporating the decoration company into Luo Shengtang at all.
After talking for a long time, there was no mention of the issue of shares.
"If you want to do it, Brother Luo, I suggest you do it as soon as possible."
After all, Luo Yang took the initiative, and later in the conversation, Cai Fujun couldn't help but get to the point.
He gave a pertinent suggestion: "Especially for the construction team, the sooner they get familiar with the store decoration model, the better, so as to avoid being in a rush when the big boom comes next year and not being able to keep up with the speed of store expansion!"
"Yeah, that's what I thought too."
Luo Yang nodded: "I will discuss with my family when I return to Yang City this week and set up a construction team as soon as possible."
“The stall is huge!”
Now is the time to secretly compete with each other.
Luo Yang mentioned the establishment of a construction team, and Cai Fujun mentioned the problem of a large business: "Once franchise stores are opened, they will definitely bloom all over the country. By then, we may need hundreds of teams to spread out to various places. How to manage them and how to purchase materials will be difficult!"
"Yes, the stall is going to be so big all at once!"
Luo Yang smacked his lips and said, "It looks like we need to set up branches and subsidiaries in each province to centrally manage the decoration of the franchise stores in that province. If there is not enough time, we may even outsource it to local decoration companies."
Cai Fujun was stunned by what Luo Yang said.
Yes, the size of the stall is not a big problem. You can just give up part of the profit and subcontract it to the local decoration company.
In this way, not to mention construction, even the material procurement step can be saved.
The headquarters is mainly responsible for inspection and supervision.
"Brother Luo, I have to say that there are too many tricks in material procurement. Even if you want to subcontract it out, it is best to include labor instead of materials."
Cai Fujun wants to earn more: "Besides, the renovation project is large, we can negotiate the purchase directly from the manufacturer. This way, our profit can be even greater!"
This is centralized procurement.
Many real estate companies do the same, especially large real estate companies, which complete millions or tens of millions of square meters of houses every year. If they negotiate directly with manufacturers for materials such as exterior wall paint and aluminum alloy doors and windows, they can save a lot of costs.
As each side mentioned their expertise in their respective fields, the probing between the two sides came to an end.
"How much initial investment do you think is needed to set up such a decoration company?"
Finally, we come to the core issue.
"I think 1000 million is enough!"
Among the current direct-operated stores, Naixue’s is more refined and has a larger store area, so the decoration costs are roughly between 8 and 15 yuan. Lemon CC’s store area is smaller and the decoration is not as high-end, so the cost is basically between 2 and 3 yuan.
Taking into account the one-month renovation period, the 1000 million yuan in funds is enough to cope with the renovation projects of 50 to 70 stores starting at the same time.
After that, the funds will start to circulate, and with the considerable profits, the business can be expanded further.
We don’t have to worry about the number of franchise stores, because the decoration fees will be collected first.
"I'll put in 800 million, plus advance payment for materials in the Yangtze River Delta region, and I'll own 30% of the shares. How do you think?"
If it weren't for the fact that Luo Yang needed to contribute a symbolic amount of money, Cai Fujun could have easily taken over the entire 1000 million initial capital.
30%
This business will not last long and will only be profitable for two to three years. As the store expansion reaches its limit, the project volume will plummet.
But this business is very profitable. Before reaching saturation, it will definitely make more than 100 million yuan every year.
Cai Fujun wants to take away 30% at once. After a few years, it means he will take away more than million yuan in profits!
"Brother, to be honest with you, I have several people to share!"
After a moment's silence, Luo Yang said, "I personally only own about 40% at most, so you should give up some of the shares."
My mother's family plans to give one share, my uncle and third uncle's families plan to give one share, Chu Junpeng who is in charge of the construction team plans to give one share, Jiang Wen will give one share, and Cao Zixi will hide some of his own money. All in all, almost 30% of the shares will be given away.
As for the money under your own name, you can invest it in the project at any time.
"25%, Brother Luo, it can't be any less!"
Cai Fujun reluctantly cut off 5% and said: "I still need to spend a lot of energy on material procurement. If I can do this well, it won't be difficult to increase the profit by to %!"
Luo Yang also knew that he couldn't suppress it any longer.
Because Cai Fujun did not make one thing clear, it is impossible for all these 25% shares to belong to him.
Liu Haishan and He Maosong would definitely buy some from him.
Although it was a premium, it was good enough that Cai Fujun could keep 15% in the end.
This is a negotiation outside the company system, but it is inseparable from the entanglement of internal equity in the company.
After the final negotiation, Luo Yang gave up 25% of his interests.
Everyone forms a new balance externally.
After talking about the most important things, the rest of the conversation became much easier.
"Come to my shop for a small gathering in the evening."
When leaving, Cai Fujun shook Luo Yang's hand with a smile on his face and said, "We will treat you with good wine and good food."
Good wine and good food?
Believe it or not!
But it is indeed worth looking forward to.
"I also miss the taste of the home-cooked food in my brother's shop. I will definitely go there later!"
He accompanied Cai Fujun all the way to the company gate.
When he returned to the office, he waved to Tan Ying who was already sitting in the lounge area of the board office.
"When will you return to the Magic City?"
Tan Ying rushed back from Thailand. He had previously been in Bangkok with the "Lost in Thailand" crew as a producer.
"Arrived last night."
“How is the filming progress of Lost in Thailand?”
"The progress is pretty good, the main thing is the location. Director Xu has high requirements and has traveled to many places."
Tan Ying sat in the seat that Cai Fujun had just taken.
He didn't dare to act casually and sat very respectfully.
"Ms. Yu will be able to finish her role at the beginning of next month and return home early."
The report content has a focus, and he thinks the focus is Yu Fang.
Luo Yang smiled and said nothing.
He boiled a new pot of water, washed and rinsed the tea sets he had just used for drinking tea, and then brewed another pot of tea.
“I have high expectations for this drama.”
Luo Yang's focus was not on women. He poured a cup of tea and pushed it to Tan Ying before continuing, "We hope that the box office will even exceed that of the previous film Love Is Not Blind, so we must put in a lot of effort in the later promotion!"
"Higher than the box office of Love Is Not Blind?"
Hearing this, Tan Ying was stunned for a moment.
This must be a box office of 400 to 500 million, right?
Can a comedy film have such a high box office?
But the boss has already spoken, what can he, as his subordinate, do?
"Okay, Chairman, I will follow up on this later."
"I called you back this time for another matter!"
After talking about Lost in Thailand, Luo Yang talked about the purpose of calling Tan Ying back this time: "Take some time to go to the capital, and go find an entertainment company called Happy Twist to see if there is any opportunity to buy shares, or invest in their works."
Although "Charlotte's Troubles" will not be released until 15, Luo Yang thinks it is better to get in touch with it as early as possible.
Moreover, ever since the success of "Charlotte's Troubles", the Happy Twist team has been unstoppable. Just investing in their first movie alone makes it difficult to pick up bargains later.
So he thought of making arrangements in advance.
Shen Teng isn’t very famous now, right?
Happy Twist isn’t that valuable, right?
To sum up, you should make big money by investing in Toutiao, and don't miss out on small money by investing in decoration, movies, etc.
If you don’t make money, you’re a bastard!
(End of this chapter)
